Netflix expands password-sharing crackdown worldwide FMTNews FMTBusiness
Netflix aims to persuade free users with shared passwords to begin paying without alienating subscribers.
“This account sharing initiative helps us have a larger base of potential paying members and grow Netflix long term,” co-chief executive Ted Sarandos said on an earnings call.The company told financial analysts recently that it had delayed a broad crackdown on password sharing “to improve the experience for members”.
He reasoned that Netflix likely pays royalties when subscribers watch some shows or films on the platform, so non-paying viewers could add to the service’s expenses while not contributing to revenue. The launch of an ad-subsidized offering around the same time as a crackdown on password sharing is no coincidence, reasoned Insider Intelligence senior analyst Ross Benes.
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